Is it really "sharing"?
Presentation of the so-called "Sharing" Economy, for a lecture about service innovation at Linköping University (LiU), during a course in Service Management and Marketing.
I talk about Unicorns; collaborative... consumption-production-finance-learning-governance; “platform cooperativism” and my research focus on shared mobility.
- First upload: 11 March 2016 (v.2016)
- Update: 20 March 2017 (v.2017)
- Update: 14 March 2018 (v.2018 ~ http://bit.ly/2GtkxIk)
2. Hugo Guyader
Hugo Guyader
• PhD student at LiU.
OuiShare Sweden Connector.
• Multi-method approach to research:
experiments, surveys, interviews,
(n)etnography..
• Research focus on collaborative
consumption and P2P exchange through
online platforms. The recent growth of
shared mobility services (ie. ridesharing
and private car rentals) is a fascinating
phenomenon to investigate.
• Teaching in Fundamental Marketing,
Consumer Behavior, Service Marketing,
Advanced Marketing, Leadership & Strategy …
@experienceetchugo.guyader@liu.se
3. Hugo Guyader
Today
• the “Sharing” Economy
• collaborative…
consumption/production
/finance/learning/govenance
• did you say Unicorns??
• platform cooperativism
6. Hugo Guyader
Peer-to-Peer / Consumer-to-Consumer
• ICT enables people to get what they need from each other on-
demand, rather than from centralized institutions traditionally selling
goods and services.
The economy evolved from traditional market exchange between sellers and buyers,
to network relationships of suppliers and users. (Rifkin 2000)
• Private individuals can connect to online
platforms and share their slack resources (e.g.
time, skills, space, goods) through P2P services,
allowing them to unlock value from their
underutilized possessions and enabling other
platform users to access goods only when needed.
7. Lisa Gansky (2010). “The Mesh: Why the Future of Business Is Sharing.” — Chelsea Rustrum, Gabriel Stempinski & Alexandra Liss
(2014). “It's a shareable life: A Practical Guide to Sharing.” — Jasper Ribbers & Huzefa Kapadia (2014). “Get Paid For Your Pad:
How to Maximize Profit From Your Airbnb Listing.” — Warren Bell (2014). “The Airbnb Entrepreneur: How To Earn Big Profits,
Even If You Don't Own a Property.” — Christopher M. Jennings (2014). “Darebnb: The truth about turning your unused space into
real income on Airbnb.” — John Dale (2015). “Learn how to make an extra income renting your short-term rental or spare room all
over the world!” — Alex Stephany (2015). “The Business of Sharing: Making it in the New Sharing Economy.” — Claire Marshall
(2015). “How to make money (and a whole lot more) by Sharing. A quick start guide to the sharing economy.” — Glenn Carter
(2015). “Secrets of the Sharing Economy: Unofficial Guide to Using Airbnb, Uber, & More to Earn $1000’s.” — Michael James
(2015). “Airbnb Super-Host: The Ultimate Guide to Hosting Success: Unlock Your Home's Earning Potential The Right Way To
Make More Money with Airbnb.” — Michael Fertik & David C. Thompson (2015). “The Reputation Economy: How to Optimize
Your Digital Footprint in a World Where Your Reputation Is Your Most Valuable Asset.” — Sally Miller (2015). “Make Money On
Airbnb: How To Quickly And Easily Earn $2,500 A Month From Your Home.” — Billee Howard (2015). “We-Commerce: How to
Create, Collaborate, and Succeed in the Sharing Economy.” — Bryan Kramer (2015). “Shareology: How Sharing is Powering the
Human Economy.” — Diane Mulcahy (2016). “The Gig Economy: The Complete Guide to Getting Better Work, Taking More Time
Off, and Financing the Life You Want.” — Nick Loper (2016). “Buy Buttons: The Fast-Track Strategy to Make Extra Money and
Start a Business in Your Spare Time. [Featuring 300+ Apps and Peer-to-Peer Marketplaces]” — Jared Meyer (2016). “Uber-Positive:
Why Americans Love the Sharing Economy.” — Beandrea July (2016). “Airbnb Your Life: The Host Edition:” — Vince Hinojosa
(2016) “Confessions of an AirBNB Host: How I made $17,623 on AirBNB and So Can You!.”
9. Hugo Guyader
Social
Drivers
• Population Density
• Mindset of Sustainability
• Lifestyle Trend among Youth
• Altruistic Mindset
• Independent Lifestyle
Economic
Drivers
• Increase in World Population
• Strained Resources
• Economic Disparities
• Excess or Idle Inventory
• Inaccessible Luxury
• Influx of VC Funding
Technology
Drivers
• Social Networking Technologies
• Mobile Technologies
• Payment Systems
Why it’s Happening Now
Owyang 2014
10. Hugo Guyader
Back to the beginning…
Living space (58%), Work space (57%), Food preparation/meal-
sharing (57%), Household items (53%), Apparel (50%)
Gorenflo 2010
Drivers of sharing:
Technology (85%)
Community (78%)
Environment (60%)
Cost Saving (67%)
12. Hugo Guyader
Trust #1 barrier to sharing
67% express trust concerns as the primary barrier
to join a collaborative consumption service
30% fear that their goods will be stolen or broken
23% express a basic mistrust of strangers
14% express “privacy concerns”
Campbell Mithun 2012
Sharing platforms use peer-review and
reputation-based systems to create
trust and alleviate the problem of “free-
riders” who do not contribute.
18. Hugo Guyader
People switch to sharing if a well-known brand saves
them 25% from buying costs and adds convenience
• PRICE: More than half of North Americans will consider switching from
buying to sharing if it lets them save 25 percent. Established brands often
compete with sharing startups on price when they launch a marketplace of
used goods or enable a marketplace of lower cost service workers.
• CONVENIENCE: the top driver of sharing transactions. A third of
conventional purchasers will consider sharing if it offers a more
convenient option. Companies can rent out durable goods, offer
convenience-based services, or offering subscription models that deliver
goods on a regular basis.
• BRAND: Sharers gravitate to well-known brands, whether those are
traditional companies or trend-setting startups. The best way for
companies to build their brand in their collaborative economy is to enable
a platform that brings customers closer to the innovation process, and
enable makers, crowdfunders, and others to co-innovate with your brand.
Owyang & Samuel 2015
21. Hugo Guyader
To sum up:
• economic incentive
• an urge to reduce the socio-
environmental impact of consumption
and a belief in “the commons”
• normative desires to satisfy
altruistic needs and of community-
belonging
• shift from ownership to access
• ICT developments = convenience
22. Hugo Guyader
The “Neo-Sharer” or “NOwner”
‣ mobile and connected
(the “dot-com”
generation)
‣ millennial
‣ mid-high income
‣ high level of education
‣ living in urban areas
‣ unique personality
‣ like to experiment new
things
‣ innovative, playful and
creative
Sharing is more a choice than a necessity.
“homo cooperans” not “homo economicus”
they cooperate for their emancipation, autonomy,
social justice, knowledge sharing and open production.
24. • The more network users,
the more valuable it becomes,
the better services can be provided.
Service Logic
• Service organizations develop
online platforms that enable their
users to exchange P2P services.
25. Hugo Guyader
What’s Mine is Yours
TEDTalk 2010: The case
for Collaborative
Consumption.
Consumers co-create
value by sharing existing
products that are only
temporarily needed, rather
than owning them.
Consumers access to
more resources,
more convenience,
and at lower costs.
Rachel Botsman & Roo Rogers (2010)
26. Hugo Guyader
✓ a critical mass of users
✓ idling or excess capacity of unused goods
✓ belief in the common good
✓ social trust
The P2P Foundation also identifies 2 main societal drivers:
• community dynamics in conducting business and the
combined effect of digital reproduction
• the increasingly 'socialized' production of value.
4 principles of collaborative consumption
29. Hugo Guyader
(Outdated) Academic Definition
• Acts of collaborative consumption can be defined as “events
in which one or more persons consume economic goods or
services in the process of engaging in joint activities with one
or more others”.
• Collaborative consumption may or may not involve direct
physical contact between collaborators:
– ‘direct-contact collaboration’ = same place at the
same time
– ‘system-hookup collaboration’ = different places but
at the same time
– ‘segregated collaboration’ = different times and places
Felson & Spaeth 1978
30. Hugo Guyader
(Outdated) Academic Definition
• The term “The Share Economy” dates back to 1984
• In his book, economist Martin Weitzman argues
that full employment and social welfare could
be achieved if workers were paid a ‘share’ of the
firm revenues.
• Companies would have an
incentive to create jobs
because more workers would
be paid only in proportion to
what they have brought in.
31. Hugo Guyader
Some clarification
Collaborative Economy: An economy built on decentralised networks
and marketplaces that unlocks the value of underused assets by matching
needs and haves, in ways that bypass traditional middlemen and disrupt
centralised institutions.
- collaborative consumption (Maximum assets utilisation through
models of redistribution and shared access) = “Sharing Economy”
- collaborative production (Design, production, and distribution of
goods through collaborative networks)
- collaborative finance (P2P banking and crowd-driven investment
models that decentralise finance)
- collaborative education (Open education and person-to-person
learning models that democratise education)
32.
33. Hugo Guyader
Think-tank and global community (10.000 members) since
2011, developing a framework that explains and brings
together different phenomena into one coherent vision:
« build a society based on openness,
collaboration and sharing »
Projects and activities include community building, producing
knowledge and incubating projects, offering support to individuals,
public institutions, and companies through professional services and
education.
OuiShare
39. Hugo Guyader
Heart and Wallet paradox
‘Hybrid economy’ with ideological tensions:
1. a logic of economic market-mediated exchange
with aspects of profit-maximization, negative
reciprocity, independence between parties who
have self-interested motivations
2. a logic of non-market exchange with elements
of solidarity, mutuality, generalized reciprocity,
and communal norms establishing
interdependence between participants
40. Hugo Guyader
Is ‘sharing’ just a fancy word for ‘rental’?
• While some of these organisations are public initiatives or
small cooperatives, others develop platform business
models capitalising on existing communities and
enhancing their P2P matchmaking services in exchange of
a transaction fixed fee or a commission.
• VCs and business angels have invested about $30 billion
in tech-startups with sharing schemes.
Sharing Economy “unicorns”:
‣ Uber = $60+
billion
‣ Airbnb = $30+
billion
• Rentals representing the greatest share of business models
42. Hugo Guyader
What’s Yours is Mine
✦ Unfulfilled promises of the Sharing Economy
openness, democratisation, equality, communitarian
values, personal exchanges/interactions, trust between
strangers, micro-entrepreneurship, less materialism
with access over ownership, sustainability, etc.
✦ In reality:
- creates new forms of commerce and new marketplaces,
- not 100% safe and trustworthy
- centralised control or mutual surveillance system,
- money for investors but not the workers
- deregulated free-market in private lives, etc.
✦ Conflicting languages:
Slee 2016
community, collective action,
libertarian/progressive politics,
grassroots activism, social change
private/corporate
financial/commercial
gains
VS
43. Hugo Guyader
We-Washing, Share-Washing,
Collaborative Washing
➡ Online businesses claim to foster
community sharing, whereas they are
mostly benefiting from enabling rental
services rather than social exchange.
➡ The “true sharing” movement raises
awareness of this loss of communities
and criticises the profits of Big Sharing
unicorns.
46. Hugo Guyader
Authenticity of a sharing platform
BlaBlaCar (FR) has been criticised of killing the original ridesharing
ideology for changing its business model (2012: from free to fees) and
“forcing” an online registration system.
Direct contact between users (exchange of emails, phone numbers)
became impossible and forbidden, and the price rose to take into
consideration the driver’s car depreciation and the platform’s commission.
The social aspect diminished (i.e. riders listen to music, sleep, claim
reserved seats; direct communication is impossible before a reservation)
and the economic aspect reversed (i.e. 12% commission, less flexibility
with booking and pricing).
Users perceive that digital security became a hassle, trust
between members faded, the original communal spirit
vanished and monetary benefits became the norm.
47. Hugo Guyader
Sharing
Belk (2007) definition of sharing:
“voluntary lending, pooling and allocation of resources, and
authorized use of public property, but not contractual renting,
leasing, or unauthorized use of property by theft or trespass”
=> the Sharing Economy is not true sharing (Belk 2014):
- presence of profit motives
- absence of feelings of community
- expectations of reciprocity
True sharing is driven by altruistic motives, a sense of
commonality, in-direct economic benefits, fame or reputation,
utilitarianism, feeling of belonging to a community.
48. Hugo Guyader
Sharing
✓ True sharing involve caring and love, it is inalienable, interpersonal
and dependent, as well as communal as it creates trust and social
bonds without contracts or legal requirements (Belk, 2010).
✓ Sharing out (vs. Sharing in) “involves giving to others outside the
boundaries separating self and other, and is closer to gift giving and
commodity exchange” (Belk 2010 p.725).
✓ “If we conceive of a continuum commodity exchange lies at one end
and sharing at the other, with gift giving somewhere in the
middle” (Belk, 2007, p.127).
commodity
exchange
gift
giving
sharing
Other relevant concepts: mutuality, generalized reciprocity, access-based consumption,
commercial sharing systems, product-sharing service systems, non ownership services…
49. Hugo Guyader
Disruption?
‣ The most common model is to take a
commission on each transaction facilitated;
something businesses have been doing for
centuries.
‣ Technology has done many things, but to
date it hasn't been able to completely do
away with the middleman.
‣ Despite their power to disrupt incumbents, sharing
economy businesses make use of the same traditional
business models.
50. Hugo Guyader
Smarter regulation for the Sharing Economy
Sharing Economy = consumers granting each other temporary
access to under-utilised physical assets (“idle capacity”), possibly
for money.
Franken et al. The Guardian 2015
1. more efficient use of physical assets
— not private individuals delivering each
other a service (on-demand economy)
2. providing each other temporary access
— no transfer of ownership
(2nd-hand economy)
3. consumer-to-consumer (C2C) platforms
— not renting or leasing a good from a B2C
company (product-service economy)
53. Hugo Guyader
Collaborative Economy Evolution
• Collaborative Economy 1.0 | Collaborative Consumption “What’s Mine is Yours”
Wikipedia (2001), The Pirate Bay (2003), CouchSurfing (2004), Linux (1991), carsharing
communal motives, moral/environmental concerns, mostly institution-based work creation/
occupation (employees), civil society initiatives
• Collaborative Economy 2.0 | Gig Economy, Crowd-based Capitalism, “What’s Yours is Mine”
Uber (2008), Airbnb (2009), La Ruche Qui Dit Oui (2010),
VC funding, extractive business models, profit-maximizing, end of employment (micro-
entrepreneurs), value cocreation facilitated by platform
• Collaborative Economy 3.0 | platform cooperativism
Fairmondo (2012), BackFeed (2015), Juno (2016)
stakeholders shareholders, open source, decentralization
- direct people-based (peer-to-peer) credit relationships between individuals,
- direct asset-based (peer-to-asset) credit relationships between individuals and
productive assets
54. Hugo Guyader
False Promises?
(1) Sharing economy sites are generally lower in cost than
market alternatives.
(2) Green? Presented as a way to reduce carbon footprints,
less resource-intensive and reducing demand for new goods/
facilities.
(3) The desire to increase social connections.
(4) Commitment to social transformation: emphasis on
the ideological values of sharing and collaboration.
While the for-profit companies may be “acting badly,” these new technologies of peer-to-peer
economic activity are potentially powerful tools for building a social movement centred on genuine
practices of sharing and cooperation in the production and consumption of goods and services. But
achieving that potential will require democratising the ownership and governance of the platforms.
Schor 2014
55.
56. Hugo Guyader
Platform Cooperativism
• Sharing platforms that facilitate P2P service exchange
should adopt a cooperative business structure with a
“multi-stakeholder model that could include providers,
customers, founders, investors, geographic communities,
and nature”
Gorenflo 2015
• “produser-owned platforms = users are producers”
Scholz 2016
• The rationale is that most P2P platforms rely on the supply
side of the network for their revenue stream, so these
users/providers should own and control the platforms.
Scholz (2014), Gansky (2014), Schneider (2014)
61. Hugo Guyader
The European collaborative economy
1) High adoption level (Europe leads the Fab Lab scene)
2) Community-driven mindset (the commons)
3) Local governmental support
4) European Union support
5) Highly diverse (culture)
6) Less venture capital (more loan entrepreneurs)
7) Non-profit works (Skjutsgruppen)
8) Big brands are adapting (BMW DriveNow, DHL MyWays)
Wichmann 2015
62. Hugo Guyader
In Sweden
• Public actors more involved, encouraging use of sharing ideas for public
spaces; while local actors reacted to global players (Airbnb) by developing
digital platforms of their own.
• Challenges: specialised industries employing a large number of people are
likely to be hit hard by increases in digitalisation and automation as well
as by the Sharing Economy cutting out traditional middlemen.
“one area of concern is the degree to which Sharing Economy firms avoid
transaction costs and risks by pushing such costs and risks onto providers and
consumers”
Drivers: (1) Increasing penetration of the Internet and smartphones,
(2) Technological advancements (IT platforms and big data
analytics), (3) Falling entry barriers, (4) Increased ease of financial
transactions, (5) Increased transparency, (6) The financial crisis,
(7) Declining consumption patterns.
Entreprenörskapsforum 2015
63. Hugo Guyader
Bike Sharing Bitcoin Car Sharing CoWorking Clothing Delivery
Donkey Republic Bitcoin Dojo (Göteborg) AudiUnite Café & Co (Stockholm) Klädbytardag BagHitch
Lånelastcyklar (Umeå) Bitcoin Stockholm Autoresurs Bilpool (Malmö) Coffice Coop (Stockholm) Klädbytardagar Freelway
Lundahoj (Lund) Bitcoin Hackers (Stockholm) Car2Go D82 (Stockholm) Klädbyte MyWays
Cykelköket (Gothenburg) Linköping Bitcoin Meetup Delebilen (Denmark) EntreprenörKyrkan (Stockholm) Klädbibliotek (Uppsala) Urbit
Stockhom City Bikes Malmö Bitcoin Users Driveback Epicenter (Stockholm) Klädoteket
Styr & Ställ (Gothenburg) Swedizen (Stockholm) Göteborgs Bilkoop (Majornas BillkooperaSv) Hus24 (Stockholm) Lånegarderoben
Hertz Freerider Hoffice Sabina and friends (Stockholm)
Hertz BilPool (Norway) Impact Hub (Stockholm) Second Lounge
Move About Knäckeriet (Stockholm) SwopShop
SamBil (cooperaSve 1980 - inacSve) Kolonien (Stockholm) The Wardrobe
Stockholm BilPool Start-Up People of Sweden (SUP46)
StudentBilen (Nissan) StudioVerket
SunFleet (Hertz) The Castle (Stockholm)
UbiGo The Park (Stockholm)
Vivallabil (cooperaSve 1983Orebro - inacSve) THINGS (Stockholm)
United Space
We Have Co (Stockholm)
Work Around
FabLab/MakerSpace Food Sharing Knowledge sharing On-Demand Services RedistribuDng/Selling Ridesharing
FabLab@School.dk AirDine beady.se Butlr Bjussa.se (rensavinden.nu) Ants (Norway)
Gothenburg Hackerspace AllWin Digiref.se DoMyTask Blocket.se Bilplats.se
IX Sthlm EatnJoy Directory of Open Access Journals Grannar.se Bortskänkes/mobages/ges/doneras/301 GoMore
MarkersLink (Linköping) Solikyl (Gothenburg) Fruktkartan: map free fruits Haxi (Norway) Bortskänkes.se Mobil Samåkning
Mikrofabriken (Gothenburg) FriSdsbanken Helping Bort.nu Roadmate (Hertz First Rent A Car - inacSve)
Open Lab (Stockholm) Gapminder Hinner Inte Hinner Du Endast BORTSKÄNKES i Majorna! Samåkning.se
Recompile (Malmö) MabeHjälpen (Linköping) TaskRunner Freeshop.se Samlats.se (inacSve)
SIS AFK (Blekinge) MinFarm Uber PoP [stopped May 2016] Freecycle GBG (Gothenburg) Skjutsgruppen ("Ridesharing Movement")
Sparvnästet (Stockholm) Time Village Vint: P2P workout Garaget (Malmö) We Are Together
Stockholm Makerspace Tutopia (Linköping) WayWay Il Recycling
THINGS (Stockholm) Tuva: Internet sharing Jumblets
ToolPool (Malmö) Köpes/Säljes/Bortskänkes , Göteborg
Umeå Hackerspace Möbler säljes/köpes/bortskänkes
Myrorna
off2off
Schpock
SyndAbKasta
Tiptapp
P2P Car Rentals P2P Home Rentals P2P Lending/Funding P2P parking space P2P RenDng Professional Services
Flexidrive (SnappCar) Airbnb CrowdCube ApParkingSpot Delbar Coompanion
GoMore FriTiden.se CrowdCulture GrannSaker eWork
ridebite.com HemByte.nu (HomeExchange) FundedByMe Hygglo Kompanjoner
HomeLink.org (bostadsbyte.com) Lendify Rentl PopUpMore
Meet The Swedes ToBorrow Swinga Bazaar Re:TexSle
Semesterbyte.com (inacSve) Trustbuddy Tjikko SpaceTime
ToBorrow
65. Hugo Guyader
My research: organized ridesharing
Liftsharing (UK) or Carpooling (US)
two-sided platforms
e.g. Blablacar
hitchhiking, slugging
TNCs: Uber, Lyft, Sidecar
✦ Individual travellers share a
vehicle for a trip and split travel
costs with others that have similar
itineraries and time schedules.
(Furuhata et al. 2013)
66. Hugo Guyader
Organized ridesharing
Two-sided matching platforms facilitating ridesharing services by
matching individual car drivers and passengers.
Ridesharing can include small detours, but it does not concern for-
profit taxis and chauffeured vehicles in which drivers make a special
trip to carry a passenger and enable them to make profits (e.g. the
passenger pays more than the trip gas costs).
- Transportation Network Companies provide such “ridesourcing service”.
Blablacar: largest platform in Europe with 20 million members in 18
markets, arranging 2 million rides per month and estimates to enable
drivers yearly total savings of $320 million.
The average shared ride distance in Europe is 342 km.
Blablacar claims to raise car occupancy from 1.7 to 2.8 passengers.
67. Hugo Guyader
Organized ridesharing
✴ Main motivations and drivers for the sharing economy:
more convenience and efficiency (technology), economic benefits
(affordability, cost-savings, monetisation of under-utilised assets; better
value/quality), environmentally friendliness, strong community,
access lifestyle, curiosity and fun.
In Denmark, a recent ridesharing study reports the user perceptions of the
service as positive thanks to cost savings, greater comfort, flexibility and
speed, and socialization with vehicle occupants;
…but also negative because of a lack of ride availability and inconvenience
in finding them, viewing ridesharing as unsafe or unsecure, and
expectations of social awkwardness and exclusion (Nielsen et al., 2015).
➡
Economic and social attributes seem to be the strongest choice
determinants for adopting a ridesharing service.
68. Hugo Guyader
BlaBlaCar
‣
covoiturage.fr (“carpooling” in French)
‣
new “transactional booking model”
based on an online registration system
replacing the exchange of cash and
reducing no-shows and cancellations
business model:
passengers pay a 11.88% commission
and a 0,89€ fixed-fee per reservation
‣
22 countries
40 million members
Average shared distance: 350km
Average car occupancy: 3 persons
73. Hugo Guyader
Imported ridesharing from Germany to Denmark, seeing an opportunity in the
Danes’ concern for the environment and their discontent with public transportation
(prices, delays, cancellations). Organic growth as a non-profit platform for 6 years.
Enhanced the ridesharing platform with a new technology enabling online payment.
Begun to charge the drivers a 9% commission on their ride.
– launch of P2P car rentals: Users could now borrow privately owned vehicles
from other users, or rent out their own car. An insurance-deal covers the rental
period.
– launch of leasing: when the car idles, it can be rented out to GoMore members.
By renting out their leased car 8 days/month, the Leasers can make up the leasing
cost, so the car can be used for free the rest of the month.
More than 300.000 users in Scandinavia (50.000 in Sweden).
GoMore